00:01
Hello students, here is a question.
00:02
When you buy a bond, you do not have much influence over how a company spend its money.
00:08
So, this is our question.
00:09
Let us answer this.
00:12
So, our first point is, when you buy a bond, you are essentially lending money to the company or a government entities.
00:23
When you buy a bond, you are essentially lending money to a company government.
00:42
And our second point is, in return of your loan, the company or government entity promises to pay you back the principal amount plus interest over a specified period of time.
00:57
So, in return of your loan, the company or the government entity will promise to give back principal amount and interest over a specified period of time.
01:29
And our third point is, as a bond holders, you do not have an ownership stake in a company or government entity...